Arconic (NYSE:ARNC) stock is on the rise Thursday following news that the company is being acquired by Apollo Global Management (NYSE:APO).
Apollo Global Management intends to use cash to fuel its $5.2 billion acquisition of Arconic. This values shares of ARNC stock at $30 each, which is a 36% premium to its closing price on Feb. 27, 2023. That was the last day of trading before reports disturbed the price of ARNC shares.
Apollo Global Management is planning several investments to increase the value of Arconic after the deal. That includes upgrades that will bring the metal company’s manufacturing plants into the modern era.
Tim Myers, CEO of Arconic, said the following about the news:
“This transaction will provide Arconic with the backing of one of the world’s premier investment firms and will allow us to leverage Apollo’s industry expertise and relationships to pursue our long-term strategic goals. I look forward to working with their team to create opportunities for our employees and provide value to our customers.”
Details of the ARNC Stock Deal
The deal with Apollo Global Management has the support of Arconic’s board of directors. That means it now needs approval from shareholders and regulators. If there are no problems getting these approvals, the deal should close in the second half of 2023.
Investors will also note that some 2 million shares of ARNC stock are trading alongside today’s news. That’s well above its daily average trading volume of about 1.3 million shares. It also has ARNC shares up 28% as of Thursday morning.
There’s more stock market news worth diving into below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
